FAR WESTERN UNIVERSITY

Faculty of Management
Course Title: Business Law Full Marks: 100
Course Code: MGMT 324 Pass Marks: 45
Nature of the course: Theory Time per period: 1 hr.
Year: Second Total periods: 120
Level: BBS

Course Description:
Businesses operate within a clear but quite complex legal environment. To become an effective
business leader or business owner, students need to understand that environment. Business Law
addresses statutes and regulations affecting businesses, families, and individuals in their related
roles. Knowledge of business law is useful for all students because all students eventually
assume roles as citizens, workers, and consumers in their communities and in society at large.
The purpose of this course is to give student an overview of legal matters that they will deal with
in their personal and professional life. The course begins with a quick view on the concept of
law, sources of business law and covers a wide range of legal topics such as contract law, law of
Agency, law of Sale of Goods and Consumer Protection law. Intellectual Property Legislations,
Company Incorporation and management and many more critical legal issues that are common in
the business world. This course also provides a general understanding of dispute settlement
process in Nepal.

LEARNING OBJECTIVES:
A. The general objectives of the course are as follows:
 Understand basic legal terminology and concepts.
 Identify the fundamental legal principles behind formation, performance and
termination of contract.
 Enable the students to understand the emerging legal issues in business
environment.
 Understand the Nepalese Legal Environment in which Business is carried on.
 Explain the legal structure of different forms business organizations
 Acquire problem solving techniques and to be able to present coherent, concise
legal argument.
 Provide knowledge to the students about the dispute settlement process in Nepal.

B. Specific Objectives and Contents

Contents
Specific Objectives
 Understand the concept and sources of Unit - 1: Introduction to Law (5 hours):
law 1.1. Meaning and nature of law
 Understand the concept of business law 1.2. Types and sources of law;
 Identify the sources of business law 1.3. Concept of business law; importance and Scope of
Business Law,
1.4. Sources of Business Law,
1.5. Sources of Nepalese Business Law,
 Understand the concept of contract Unit – 2: Law of Contract (30 hours):
 Identify the elements of a contract: 2.1. Meaning and definition of Contract, Types of Contract,

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 Discuss the requirements of an offer and
acceptance and how the offer can be
terminated/discharged.
 Identify the classifications of contracts:
valid, void, voidable, unenforceable,
express, implied, oral, and written.
 Define consideration.
 Understand the meaning of contingent
contract and quasi contract
 Differentiate among the ways that a
contract can be disrupted, such as fraud,
non-disclosure, misrepresentation,
mistake, duress, and undue influence.
 Name the ways a contract may be
terminated or discharged.
 Explain a minor’s rights to disaffirm
contracts.
 Define breach of contract.
 Name legal remedies available for
resolution of breach of contract.
 Understand the concept of bailment and
pledge
 Explain how a bailment is created
 Identify the rights and duties of bailor
and bailee, Pawner and Pawnee and
finder of lost goods
 Know the pledge by non-owner.
 Understand the concept of Indemnity
and Guarantee
 Identify the rights and duties of
indemnifier and indemnity holder
 Define guarantee and surety
 Understand the concept of agency and
arbitration
 Identify the parties of an agency
 Describe how an agency is created and
terminated
 Understand the Concept and importance
of arbitration
 Identify the power and duties of arbitrator
 Name the ways of revocation of
arbitrator's authority
2.2. Essentials of a valid contract, (Offer, Acceptance,
Consideration, Capacity of Parties, Free Consent,
Legality of Object.)
2.3. Meaning and rules regarding offer, acceptance,
contractual capacity,
2.4. Minor’s agreements
2.5. Person with of unsound mind and disqualified
persons,
2.6. Voidable contract: Coercion, Undue influence
misrepresentation, Fraud and Mistake
27. Contingent Contract. Distinction between
Contingent Contract and Wagering Agreement;
2.8. Performance of Contract;
2.9. Termination and Discharge of contract;
2.10. Remedies for Breach of Contract,
2.11. Quasi Contracts.
2.12. Evolution of contract law in Nepal.
Unit- 3: Bailment and Pledge (6 hours):
3.1. Concept and features of bailment and pledge;
3.2. Distinction between bailment and pledge; Right and
duties of bailor and bailee, Pawner and pawnee
3.3 Rights and duties of finder of lost goods.
3.4. Pledge by non-owner.
Unit -4: Indemnity and Guarantee (4 hours):
4.1. Meaning and definition of contract of indemnity;
4.2. Rights and duties of indemnifier and indemnity holder;
4.3.Meaning and types of guarantee;
4.4. Rights and liabilities of surety;
Discharge of surety's liability;
4.5. Distinction between indemnity and guarantee.
Unit -5: Agency and Arbitration: (16 hours)
5.1. Meaning and definition of agency;
5.2. Creation of agency; Classification of agents;
5.3. Rights, Duties and personal liabilities of agent and
principal
5.4. Termination of agency;
5.4. Provisions of Nepal Agency Act, and Agency Rules.
5.5. Procedure of registration and effect of non-registration
of agency in Nepal.
5.6. Concept of arbitration,
5.7. Importance of arbitration;
5.8. Who can refer disputes to arbitration?
5.9. What may be referred to arbitration?
5.10.Powers and duties of arbitrator,
5.11. Revocation of arbitrator's authority,
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 Explain the difference between a sale
contract and an agreement to sell
 Determine when title and risk of loss
pass
 Distinguish between express and
implied warranty
 Understand the concept of unpaid seller
 Understand different types of consumer
frauds/consumer dispute
 Describe laws and agencies that protect
consumer
 Understand the regulations relating to
consumer protection
 Identify the administrative agencies
relating to consumer protection
 Understand the concept of intellectual
properties (e.g., patents, copyrights,
trademarks).
 Explain how intellectual property can be
acquired
 Understand the benefits of intellectual
properties.
 Understand the major provisions of
intellectual property laws in Nepal.
 Understand the concept types and
functions of negotiable instruments
 Understand how negotiable instruments
are transferred and assigned
 Differentiate between bearer and
ordered paper
 List the requirements of negotiability
 Identify the types of endorsement
 Describe how negotiable instruments are
discharged
5.12. The Award and Execution of the award.
5.13. Provisions relating to Arbitration in Nepal.
Unit - 6: Sale of Goods Act and Consumer Protection
Act (16 hours):
6.1.Contract of sale, difference between sale and
agreement to sell;
6.2. Conditions and warranties;
6.3. Transfer of ownership in goods including sale by non-
owners;
6.4. The principle of Caveat Emptor.
6.4. Performance of sale and Unpaid seller – meaning and
rights of an unpaid seller against the goods and the
buyer.
6.5. Objectives of consumer protection,
6.6.Definition of Consumer, Consumer Dispute,
Complaint, Complainant, Deficiency, Service,
6.7. Restrictive/Unfair Trade Practice;
6.8. Rights of Consumer,
6.9. Consumer Protection Council,
6.10. Consumer Grievances Redressal Agencies.
6.11. Provisions of Consumer Protection act in Nepal.
Unit - 7: Intellectual Property Legislations (10 hours):
7.1. Meaning and Scope of Intellectual Properties,
7.2. Forms of Intellectual Property,
7.3. Patent - Rights and Duties of Patentee, Infringement of
Patent, Relief Available;
7.4. Trade Mark - Assignment and Transmission of Trade
Mark, Infringement, Action against Infringement;
7.5. Copy Right - Meaning, Infringement and Remedies
Available;
7.6. Procedure for Grant of Process and Product Patents,
7.7. WTO Rules as to Patents (in brief).
7.8. Major Provisions of patent, Trademark and copyright
laws in Nepal.
Unit - 8: Negotiable Instruments Act (6 hours)
8.1. Concept and Importance of Negotiable Instruments;
8.2. Types and Characteristics of Negotiable Instruments;
8.3. Features of Promissory note,
8.4. Bill of Exchange,
8.5. Cheque;
8.6. Holder and holder in due Course;
8.7. Dishonour of Negotiable Instruments. Provision of
Negotiable Instruments Act in Nepal.
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 Understand the concept of Cyber
Law/Information Technology Act
 Understand the regulations relating to
Cyber crime
 Identify the administrative agencies
relating to Cyber crime
 Understand the procedure of setting up
and operating sole proprietorships,
partnerships, and corporations
 Explain haw a sole proprietorship,
partnership, and corporation is
dissolved
 Identify the important documents of a
joint stock company
Unit - 9: Cyber Law/Information Technology Act (5
hours):
9.1. Concept, Objectives and Definition of various Terms
related to cyber law and information technology.
9.2. Salient Features,
9.3. Provisions pertaining to Piracy and related Offences
and Penalties,
9.4. Cyber Appellate Tribunal.
Unit 10: An overview of laws relating to business
organizations in Nepal: (16 hours)
10.1. Sole proprietorship:
10.1.1.Procedure of registration
10.1.2.Effects of non-registration
10.1.3. Dissolution of firm
10.2. Partnership:
10.2.1. Definition, essentials of partnership
10.2.2. Rights, duties and Liabilities of partners
10.2.3. Types of partnership
10.2.4. Registration of a firm
10.2.5.Effects of non-registration,
10.2.6. Dissolution of partnership.
10.3. Joint stock company:
10.3.1. Formation of company
10.3.1.1. Procedure for registration and incorporation,
10.3.1.2. Certificate of incorporation and
commencement of business;
10.3.2. Important books
10.3.2.1. Memorandum of Association(Contents)
10.3.2.2. Articles of Association (Content)
10.3.2.3 Prospectus (form and content)
10.3.3. Management of company:
10.3.4. Minutes and reports of company
10.3.5. Company meetings and procedures of
company meeting.
10.5.1. Appointment, Rights, and duties of an
auditor.
10.3.3. Winding up of companies:
10. 3.3.1. Various modes (Compulsory winding up)
10.3.3.2.Members and creditors voluntary
winding up
10.3.3.3.Winding up subject to the supervision of
the court
10.3.3.4. Powers and duties of official liquidator
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 Acquaint with the court procedure in
Nepal.
 Know the concept of alternative dispute
settlement process.
Unit 11. Dispute Settlement process in Nepal (6 hours)
11.1. The Court Process in Nepal.
11.2. Alternative Dispute Resolution process
11.2.1. Arbitration.
11.2.2. Conciliation.

Basic Book and References:

Basic text book

Basic Books
1.Anson, W.R, Anson's Law of Contract, Oxford University Press, London
2.L. Y. Robertson Smith, G.G. Mann, R.A. & Roberts Business Law, West Publishing Co.
Chicago
3. Shukla, M.C. Commercial Law - S. Chand & Sons, New Delhi
4. Kucchal M.C, Business Law, Vikash Publishing House, Delhi,
References:
Reference Books
5. Beatty J. F, Samuelson S. S, Bredeson D, .Business Law and the Legal Environment;
South Western Cengage Learning.
6. Tulsan P.C. Business Law, Tata McGraw Hill Delhi,
7. Contract Act 056,
8. Agency Act 2014,
9. Agency Rules 2019,
10. Arbitration Act 2055,
11. Nepal Negotiable Instruments Act 2034,
12. Company Act 2063
13. Consumer Protection act in Nepal. 2054.
14. The Patent, Design and Trade Mark Act, 2022 with recent amendments (2044 and, 2063).
15. The Copyright Act, 2059.
16. The Electronic Transaction Act 2063.
17. Partnership Act, 2020 (1964)
18. Private Firm Registration Act, 2014 (1958)
19. Companies Act, 2063.
20. Arbitration Act, 2055.